Wolverine Bank turns 80 years old

Published 6:30 am, Sunday, August 11, 2013

With 80 years under its belt since its 1933 charter in Midland, Wolverine Bank is both expanding its reach and staying put.

“We are very proud to be a part of the community and the Great Lakes Bay Region,” said Dave Dunn, president and CEO. “We have no plans to move our headquarters.”

The company was “very well capitalized” before it went public on Jan. 20, 2011, he said, with shares at the IPO going for $10 each. Closing price on Friday was $19.47. Wolverine has done well enough that at the end of 2012, it issued a special dividend of $1 per share.

“It was additional return to our shareholders. We had earnings that we thought were appropriate to share,” Dunn said.

The bank remains capitalized at $63 million, more than double the requirements, he said. “So that gives us a lot of flexibility.” For example, their legal lending limit is well in excess of $9 million.

“That’s significantly higher than the norm,” he said, “As you’re driving around, most of the buildings you’d see would certainly fit in those budget constraints.”

They also remain involved in subdivision developments. “So we’re involved in all aspects of lending in those areas, too.” In 2012, Wolverine opened a second loan office in Saginaw, and since has added one in Bay City.

“These are very important market areas for us,” Dunn said. “We’re very proud to be a hometown community bank.”

Outside the Great Lakes Bay Region, the bank has commercial loan officers in Grand Rapids, Lansing and Traverse City. Even so, geographic location doesn’t play the role it used to.

“We have a lot of customers that never, ever come into our banks,” Dunn said. That’s partly because of technology, and partly because of large corporate employees such as The Dow Chemical Co. and Dow Corning Corp.

“To be real frank on that, when we have customers transferring into the immediate area, their time is much more important finding out where to live and the schools,” he explained. “It’s very easy to do business over the phone and otherwise,” he said. “And obviously we are there and we have the physical presence but our customers just don’t need to come in.”

Wolverine handled residential loans in 20 states last year, coast to coast, many to people with homes or relatives in Midland. The bank also reached a milestone last year: $1 billion in fixed rate residential loans. In 2012 alone, $100 million in loans was originated. “We’re very proud of that, and obviously what that did for our customers.”

The low interest rates on 15- and 30-year mortgages make them attractive to customers, but those low rates also make them unattractive to hold, so “virtually all” of them are sold, Dunn said. And while the 15-year rate has crept up from its low of 2.5 percent, “We still see a lot of opportunities in refinancing.”

Homeowners who are upside down in their mortgages still can get very good refinancing terms if they qualify for the Home Affordable Refinance Program.

“It’s a program that’s really helped those folks get good attractive financing,” he said. “That’s provided an incredible service.”

In 2008, when the economy turned south, there was a perception that no one was lending, he said. Wolverine fought that perception.

“Existing and new customers always knew that they could come,” he said. “Where that really gets proven is difficult times.”

The bank was born in tough times 80 years ago, coming out of the Depression. Dunn said he hopes the founders would be very pleased with both the strength and the integrity of the bank today.

“”We want people that have high ethical standards, that want to help other people,” he said. “Very strong employee base, and our employees and our board members are very active in the community.”

Many customers want to be shareholders, Dunn said, and like the idea of owning a community bank. That remains true even as the concept of community changes. While he is fortunate to have his daughter, son-in-law and oldest grandchild close by in Midland, other families spread out and the Internet allows them to stay in touch with each other — and their old bank.

“I think that’s been one of the real changes over the last two or three decades,” he said. “That’s one of the things that’s allowed us to expand beyond our geographic footprint.”

With customers virtually all over the world, he said Wolverine employees have learned to be careful what time they call, as many are more than three time zones away now.

“It’s not unusual for our customers to move, maybe they retire or change jobs,” he said. “They basically can have their financial institution for life.”

Dunn has found the transition to a publicly held company difficult in one aspect: regulations on what he is allowed to discuss. “The one thing, we can’t make any future-looking statements or forward-looking statements.”

While he can’t speak on specifics, he can offer general optimism. “Because of our core and our financial strength, I think it’s fair to say we are very well positioned for the challenges and the opportunities in the future,” he said. “What we’re hearing from our shareholders is that they’re very pleased.”